The Ministry of Industry and Information Technology of China announced that the automobile industry must shift its focus from price competition to quality enhancement and service improvement. This statement was made on March 29, 2025, at the opening of the China Electric Vehicle 100 People’s Conference (2025) held in Beijing from March 28 to March 30.
The ministry emphasized that new energy vehicles are the primary direction for the transformation of the automotive industry, which must continue to evolve to meet global economic conditions and changing market dynamics. Over the past year, the industry has faced significant challenges, including increasing external competition and internal pressures, making it difficult for automobile manufacturers to maintain growth. The path forward involves continuous innovation and the introduction of new energy vehicles.
In 2024, the production volume of new energy vehicles reached a record 1 million units, accounting for 65% of the total vehicle production, solidifying its position as the leading segment in the automotive market. Additionally, the ratio of new energy vehicles in total vehicle sales exceeded 40%, showcasing an increasing trend in consumer acceptance.
Furthermore, improvements in battery technology and the efficiency of electric vehicles have led to advancements in charging infrastructure. The adoption of smart technologies is also on the rise, with intelligent vehicle systems enhancing user experience, while the market share of L2 level automated vehicles reached 57.3%.
In terms of brand development, new energy vehicles have become the top choice for consumers, with 24 major Chinese brands competing for market share. The “2024 New Energy Vehicle Brand Value List” is expected to be released soon, reflecting the competitive landscape and consumer preferences.
According to the ministry, to drive industry development, there is a need to address various challenges, including supply chain stability, regulatory compliance, and resource allocation. The goal is to create a solid foundation for innovation and growth in the sector, fostering high-quality vehicle production.
As part of its initiatives, the ministry will enhance cooperation within the industry, promote policy support, and encourage continuous research and development. It aims to facilitate a favorable environment for the growth of the electric vehicle market, ensuring that the industry remains competitive globally.
In summary, the Ministry of Industry and Information Technology underscores the importance of transitioning from price competition to a focus on quality and service in the automotive sector. This strategic shift is essential for sustainable growth and innovation in the rapidly evolving landscape of the automobile industry.
